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SpaceX’s Starhopper gains thruster pods as hop test preparations ramp up
Amid a flurry of new construction at SpaceX’s Boca Chica facilities, technicians have begun to install thruster pods on Starhopper in anticipation of the prototype’s first untethered flights.
According to CEO Elon Musk, Starhopper’s “untethered hover tests” will begin with just one Raptor engine installed, potentially allowing hops to restart within the next few weeks. SpaceX is currently testing Raptor SN03 (and possibly SN02) a few hundred miles north in McGregor, Texas, just a few hours’ drive south once the engine is deemed flight-ready. Meanwhile, Starhopper itself needs a considerable amount of new hardware before it can begin Raptor-powered flight testing.
A Falcon Raptor-powered Starship
Purely from a visible perspective, the most important component Starhopper is missing is a way to control its attitude and remain stable while under Raptor power, particularly critical for hovering. Enter the aptly-named attitude control system (ACS), essentially a pod of omnidirectional thrusters. SpaceX already happens to have its own extremely mature ACS proven over nearly two dozen successful Falcon 9 and Heavy booster landings, as well as every Falcon upper stage that has ever flown. SpaceX’s ACS is based on powerful nitrogen gas thrusters, known for their white puffs during Falcon 9 booster recovery and landing operations.
On May 6th and 7th, SpaceX began to install what looked like Falcon ACS pods on Starhopper. Curiously, of the two pairs of thrusters now installed, half appear to be taken directly off of older mothballed Falcon 9 boosters, while the other two seem to have been acquired from a Falcon 9 Block 5 rocket. The latter pods may very well have come from Falcon 9 B1050, the booster that unintentionally landed in the Atlantic Ocean last December.
Based on the asymmetric location of the first two pod groups, Starhopper’s ACS will probably use a tripod layout. Additionally, the reason for the thruster pairs – versus Falcon 9’s single pods – is likely simple: Starhopper is far heavier than a Falcon booster. To get the same level of control authority, SpaceX is thus pairing pods together to double the functional strength of Starhopper’s ACS.
This leads smoothly to the installation of two (likely soon to be three) new composite-overwrapped pressure vessels (COPVs). Starhopper already has two COPVs installed on the outside of its upper tank dome, now effectively confirmed to be helium containers needed to pressurize the vehicle’s methane and oxygen tanks. Based on the fact that Starhopper’s new ACS pods appear to have come straight from Falcon boosters, it’s safe to say that the 2 (or 3) new COPVs will supply the hopper’s thrusters with gaseous nitrogen.
The Ugly Starshipling
In general, this is just the latest chapter in the book of the oddity that is Starhopper. With helium tank pressurization and nitrogen ACS thrusters taken straight from Falcon 9, a major facet of SpaceX’s Mars architecture is entirely missing from the prototype. Known as autogenous pressurization, BFR was meant to use gasified versions of its onboard liquid oxygen and methane to pressurize its propellant tanks. In a similar vein, BFR was expected to integrated the same propellant into its ACS. Simply put, helium is simply out of the question if SpaceX wants to realize its reusable Mars transport architecture. Mars does have a minute quantity of nitrogen available in its already very thin atmosphere, but extracting hundreds or thousands of kilograms is impractical in the near-term, particularly if the first Starship have to carry all of their extraction equipment from Earth.
Although Musk has seemingly confirmed that Starship and Super Heavy will use ACS thrusters more akin to the Falcon family’s cold nitrogen gas pods, he did also confirm that autogenous pressurization would be a part of even the earliest iterations of the rocket. The move from carbon fiber to steel tanks likely made a major difference, as carbon composites have extremely limited heat resistance.
Without autogenous pressurization and propellant tanks closer to the thickness of orbit-capable Starships, Starhopper is really more of a mobile test stand for Raptor than anything else. The ungainly vehicle also offers SpaceX engineers an opportunity to test Starship/Super Heavy avionics in flight conditions, particularly with respect to controlling a real Raptor engine on the fly.
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Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Tesla has one big financial question to answer for investors: Morgan Stanley
